RYVYL Inc. (RVYL) Stock Analysis and Metrics

Sector: Technology Industry: Software - Infrastructure CIK: 0001419275

P/B -0.83

P/E -0.13

P/S 0.08

Market Cap 2.68 Mn

ROIC (Qtr) 651.66

Div Yield % 0.00

Rev 1y % (Qtr) -1.62

Total Debt (Qtr) 3.25 Mn

Debt/Equity (Qtr) -1.01

About

RYVYL Inc., known by its stock symbol RVYL, is a financial technology company that specializes in the development, marketing, and sale of blockchain-based payment solutions. The company's primary objective is to create and monetize disruptive blockchain-based applications, which are integrated within a comprehensive suite of financial products capable of supporting a multitude of industries. RYVYL's main business activities revolve around the provision of financial technology solutions, specifically in the area of payment processing. The company...

RYVYL Inc., known by its stock symbol RVYL, is a financial technology company that specializes in the development, marketing, and sale of blockchain-based payment solutions. The company's primary objective is to create and monetize disruptive blockchain-based applications, which are integrated within a comprehensive suite of financial products capable of supporting a multitude of industries.

RYVYL's main business activities revolve around the provision of financial technology solutions, specifically in the area of payment processing. The company operates in various segments, including payment processing, licensing, and equipment sales. In the payment processing segment, RYVYL facilitates all financial elements of its closed-loop ecosystem and acts as the administrator for all related accounts. The company's payment processing solutions are designed to provide cost-effective, faster settlement, greater privacy, and system security.

The company generates revenue from payment processing services, licensing fees, and equipment sales. Its main source of revenue is payment processing, which includes merchant services, banking services, card issuing, foreign exchange (FX), and Automated Clearing House (ACH) programs. The company charges a percentage of each transaction's value and/or a fixed amount specified per each transaction or service.

RYVYL's proprietary blockchain-based technology serves as the settlement engine for all transactions within its ecosystem. The company's primary products include the QuickCard Payment System, the Coyni Platform, and ChargeSavvy, a complete end-to-end POS solution for the restaurant and hospitality industry. In the licensing segment, RYVYL generates revenue from licensing its technology and intellectual property to third-party companies. The equipment sales segment involves the sale of POS products to merchants.

RYVYL's customers are primarily located in North America, Europe, and Asia, and operate in various industries, including retail, e-commerce, and hospitality. The company has a diverse customer base, with no single customer accounting for more than 5% of its processing volume or revenue.

The company's competitive advantages include its proprietary blockchain-based technology, which provides a secure and efficient payment processing solution. RYVYL's technology is designed to minimize user pain points in onboarding, transactions, and offboarding, making it a compelling offering for merchants and consumers alike.

In recent developments, RYVYL has transitioned its QuickCard product in North America from terminal-based to app-based processing, which has led to a significant decline in processing volume in the North America segment. The company is addressing this temporary liquidity shortfall through cost control measures, repatriation of offshore profits, and a capital raise. Additionally, the company has issued convertible notes and preferred stock to investors, which have provided additional funding for the company's operations and growth initiatives.

The brand names and/or trade names of RYVYL's products and services include the QuickCard Payment System, the Coyni Platform, and ChargeSavvy. These products and services are designed to provide efficient, secure, and cost-effective payment processing solutions to merchants and consumers alike.

Stock Price Chart

Analysis

Pros

Healthy cash reserves of 17.74M provide 27.89x coverage of short-term debt 636000, demonstrating strong liquidity position and minimal refinancing risk.
Strong tangible asset base of 21.95M provides 6.75x coverage of total debt 3.25M, indicating robust asset backing and low credit risk.
Retained earnings of (192.52M) represent substantial 59.75x of equity (3.22M), indicating strong internal capital generation.
Strong tangible asset base of 21.95M provides 14.96x coverage of intangibles 1.47M, indicating robust asset quality.
Strong R&D investment of 1.18M at 0.69x of capex 1.72M shows balanced investment in innovation and infrastructure.

Cons

Operating cash flow of (4.13M) barely covers its investment activities of (76.93M), with a coverage ratio of 0.05, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Investment activities of (76.93M) provide weak support for R&D spending of 1.18M, which is -65.03x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
Cash reserves of 17.74M provide limited coverage of acquisition spending of (74.95M), which is -0.24x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
The company's operating cash flow of (4.13M) shows concerning coverage of stock compensation expenses of 893000, with a -4.62 ratio indicating potential earnings quality issues.
Free cash flow of (5.85M) provides weak coverage of capital expenditures of 1.72M, with a -3.40 ratio suggesting additional external financing needs for growth initiatives.

Peer Comparison

Companies in the Software - Infrastructure

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	MSFT	Microsoft Corp	3,542.10 Bn	33.76	12.06	60.56 Bn
2	ORCL	Oracle Corp	533.93 Bn	34.61	8.75	124.39 Bn
3	PLTR	Palantir Technologies Inc.	437.56 Bn	399.47	112.31	0.24 Bn
4	PANW	Palo Alto Networks Inc	125.16 Bn	112.03	13.10	0.35 Bn
5	CRWD	CrowdStrike Holdings, Inc.	120.85 Bn	-384.67	26.47	0.82 Bn
6	SNPS	Synopsys Inc	71.69 Bn	35.89	11.14	15.14 Bn
7	NET	Cloudflare, Inc.	67.84 Bn	-658.43	33.70	3.50 Bn
8	FTNT	Fortinet, Inc.	63.33 Bn	33.80	9.66	1.00 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	-0.38	2.56
EV to Cash from Ops.	2.17	38.32
EV to Debt	-2.75	-11.37
EV to EBIT	0.52	-12.79
EV to EBITDA	0.87	7.72
EV to Free Cash Flow [EV/FCF]	1.53	24.22
EV to Market Cap	-3.34	0.58
EV to Revenue	-0.25	-35.00
Price to Book Value [P/B]	-0.83	3.74
Price to Earnings [P/E]	-0.13	-18.61

Dividend Metrics

Metric	Value	Industry
Dividend Coverage Ratio	0.00	-0.30
Dividend Payout Ratio %	0.00	2.69
Dividend per Basic Share	0.00	0.10
FCF Dividend Payout Ratio %	0.00	1.67
Interest Coverage	-7.88	-13.15

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	-218.34	-404.11
Cash and Equivalents Growth (1y) %	-80.61	226.02
Dividend Growth (1y) %	0.00	-0.27
EBIAT Growth (1y) %	64.16	31.15
EBITDA Growth (1y) %	45.93	49.02
EBIT Growth (1y) %	64.50	25.85
EBT Growth (1y) %	60.43	17.82
EPS Growth (1y) %	76.03	70.69
FCF Growth (1y) %	-122.37	295.45
Gross Profit Growth (1y) %	-11.18	49.96

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	1.51	0.68
Cash Payout Ratio	0.00	0.02
Cash Ratio	0.74	1.21
Current Ratio	0.82	2.57
Debt to Equity Ratio	-1.01	-0.93
Interest Cover Ratio	-7.88	-13.15
Times Interest Earned	-7.88	-13.15

Profitability

Metric	Value	Industry
EBITDA Margin %	-44.90	-544.82
EBIT Margin %	-48.59	-197.78
EBT Margin %	-54.76	-602.74
Gross Margin %	42.70	52.06
Net Profit Margin %	-56.40	-605.52

RYVYL Inc. (NASDAQ: RVYL)